Standard Life shares plunge

Click to follow
The Independent Online

Shares in insurer Standard Life are set to fall below their original list price of 230p as the effects of the group's pursuit of rival Resolution take hold this week.

Millions of private investors ploughed cash into the Edinburgh-based firm after its demutualisation last July. Its price initially soared amid speculation the firm was a takeover target.

But since chief executive Sandy Crombie's surprise decision to wade into the bidding war for Resolution last month, the stock has plummeted.

The group's stock tumbled nearly 4 per cent on Friday at 243.75p, off a 52-week high of 357.25p. Standard Life's shares sat at 280p immediately before the bid was announced.

Institutional criticism of Standard Life's bid has, so far, been very muted with around 70 per cent of holdings in private hands.

The group, which is working with Swiss Re, is expected to reveal this week whether it plans to sweeten its offer for the Clive Cowdery-led Resolution or ditch its bid plans.

Comments